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Higher Level IB Syllabus
Microeconomics Markets Demand : • Exceptions to the law of demand :m : • Ostentatious (Veblen) goods (Vanessa Barnes) :: • Role of Expectations (Christine Lee) :: • Giffen Good (Neal Young) Elasticity Application of concepts of elasticity : • Flat rate and ad valorem taxes (Sam Ihlendfeldt) : • Incidence of indirect taxes on producer and consumer (Ellen Senf) : • Implication of elasticity of supply and demand for the incidence (burden) of taxation (Ellen Senf) Theory of the firm Cost theory : • Types of costs: fixed costs, variable costs (distinction between short-run and long-run) (Megan Pera) : • Total, Average and Marginal Costs (Misha Wahlstrom) : •Accounting cost + opportunity cost = economic cost (Misha Wahlstrom) Short-run : • Law of Diminishing Returns (Misha Wahlstrom) : • Total product, average product, marginal product (Christopher Kramer) : • Short-run cost curves (Sam Ihlendfeldt) Long-run : • Economies of scale (Neal Young) : • Diseconomies of scale (Danny Jacobson) : • Long-run cost curves (Steve Quam) Revenues : • Total Revenue (Ben Stansbury-O'Donnell) : • Additional Revenue. (Ben Stansbury-O'Donnell) : • Average Revenue (Claire Dunivan) Profit : • Distinction between normal (zero) and supernormal (abnormal) profit (Christine Lee) : • Profit maximization in terms of total revenue and total costs, and in terms of marginal revenue and marginal cost (Perihan MacDonald) : • Profit Maximization (Tsuehue Xiong) Perfect competition : • Assumptions of the model (Sabah Husain) : • Demand curve facing the industry and the firm in perfect competition (Robin Welling) : • Profit-maximizing level of output and price in the short-run and long-run (Robin Welling) : • The possibility of abnormal profits/losses in the short-run and normal profits in the long-run (Robin Welling) : • Shut-down price, break-even price (Ben Stansbury-O'Donnell) : • Definitions of allocative and productive (technical) efficiency (Megan Pera) : • Efficiency in perfect competition (Kia Vang) Monopoly : • Assumptions of the model (Sabah Husain) : • Sources of monopoly power/barriers to entry (Christine Lee) : • Natural monopoly (Kia Vang) : • Demand curve facing the monopolist (Zack Meyer) : • Profit-maximizing level of output (Perihan MacDonald) : • Advantage and disadvantage of monpoly in comparsion with perfect competition (Song Her) : • Efficiency in monopoly (Kia Vang) Monopolistic competition : • Assumptions of the model (Sabah Husain) : • Short-run and long-run equilibrium (Zack Meyer) : • Product differentiation (Ellen Senf) : • Efficiency in monopolistic competition (Perihan MacDonald) Oligopoly : • Assumptions of the model (Vanessa Barnes) : •Collusive and Non-Collusive Oligopoly (Song Her) : • Cartels (Lee Vang) : •Kinked demand curve as one model to describe interdependent behaviour (Lee Vang) : • Importance of non-price competition (Vanessa Barnes) : • A market consist of a large quantity of small firms that compete to form an equilibrium price. (Neal Young) Macroeconomics Demand and Supply-side policies • Multiplier (Audra Dunivan) • calculation of multiplier (Steve Quam) • Accelerator (Song Her) • “Crowding Out” (Megan Pera) Inflation and Unemployment • Methods of measuring inflation (Yowon Yoon) • Problems of the methods of measuring inflation (Ben Swanson-Hysell • Phillips Curve : • short-run (Danny Jacobson) : • long-run (Danny Jacobson) • Natural rate of unemployment (Zack Meyer) • Non-Accelerating Inflation Rate of Unemployment (NAIRU) (Sam Ihlendfeldt) Distribution of Income • Laffer Curve (Lee Vang) • Lorenz curve and Gini coefficient (Ben Swanson-Hysell) International Economics Reasons for Trade • Absolute and comparative advantage (numerical and diagrammatic representations) (Hannah Johnson) • opportunity cost • limitations of the theory of comparative advantage (Stephen Walker) Economic Integration Trading Blocs : • Trade creation and trade diversion (Stephen Walker) : • Obstacles to achieving integration (Stephen Walker) : • reluctance to surrender political sovereignty (Hannah Johnson) : • reluctance to surrender economic sovereignty (Hannah Johnson) Exchange Rates • Relative advantages and disadvantages of fixed and floating rates (Yowon Yoon) • Advantages and disadvantages of single currencies/monetary integration (Yowon Yoon) • Purchasing power parity theory (PPP) (Ben Swanson-Hysell) Balance of Payment Problems • Marshall-Lerner condition (Christopher Kramer) • J-curve (Christopher Kramer)